Should I Use 3rd Party Admins For my Fund?

Hello and welcome back! Today I want to answer this question: Should I use 3rd party admins for my fund?

Who Are They?

3rd party admins check and verify everything that you’re doing in your fund.

They help with things like member statements, capital calls, and distributions.

Like I said in my video

“They are involved anytime money is flowing from your fund to investors or vice versa.”

What’s The History?

10% of all funds had 3rd party admins before Bernie Madoff.

People just trusted that others were honest and keeping the books right.

After Bernie’s scandal, 90% of funds had 3rd party admins!

In my experience

For my first 2 funds, I did not hire 3rd party admins.

We had less than 20 investors, so it was relatively easy to manage.

However, for the 2 funds that I am running right now, we are definitely using admins! It would be impossible without them!

What’s the Cost?

The cost of admins varies depending on their performance and volume of work.

It will also vary based on your fund type.

For example, PE funds need less daily attention than hedge funds.

Which Admins Should I Hire?

For smaller emerging fund managers, I suggest using Nav Consulting. Cornerstone is popular as well, but I wasn’t a fan.

Another goal of these 3rd parties is to help you strike NAV (Net Asset Value).

At a given moment (every month, quarter, or year), these admins calculate the current value of all your assets. This is vital to know as a fund manager or investor.


So, are you still asking yourself, “Should I use 3rd party admins for my fund?”

Remember that in almost any circumstance, it pays to have 3rd party admins.

They will get your numbers straight, keep your investors happy, and give you a peace of mind!

That’s it for today!

See you soon,

Bridger Pennington

Want to get direct guidance for your fund? Schedule a time with my Fund Advisors!

DISCLAIMER: This content is for educational and informational purposes only. It is not to be taken as tax, financial, or legal advice. You should always consult a legal professional before taking action. Furthermore, this is not a recommendation to buy or sell any security. The content is solely just the opinion of the authors.

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